Not all yields are created equal. Staking and yield farming both promise passive income, but they work differently and carry different risks. Understanding the distinction between “real yield” and inflationary rewards is crucial for sustainable DeFi income.
Key Takeaways
- Staking = lower risk, lower reward, network validation
- Yield farming = higher risk, higher reward, liquidity provision
- Real yield comes from actual revenue, not token printing
- High APYs often mask inflationary tokenomics
- Diversify between staking and farming based on risk tolerance